BANGALORE: Tata Consultancy Services has been appointed by Tata Chemicals as
its strategic IT partner under a 10 year outsourcing arrangement. Outsourcing of
IT and core technology functions is expected to be a significant business area
for TCS from the global manufacturing and process industry sector. The
Manufacturing Practice is expected to account for 20 per cent of TCS' revenue in
2001-02.
The 10-year strategic alliance with Tata Chemicals will bring to bear TCS'
cross-functional expertise in deploying processes, technologies and systems that
would integrate Tata Chemicals' extended supply chain. Under this contract, TCS
will also supervise the planning and implementation of all plant automation and
optimization systems. Group company Tata Honeywell has been awarded the contract
for commissioning automation systems at the soda ash plant in Mithapur, Gujarat.
TCS will provide basic IT applications and infrastructure services support as
well as high end technology solutions to Tata Chemicals at all its operating
locations. Tata Chemicals managers will increasingly use automated decision
support systems that will track key performance indicators in the areas of
procurement, inventory, production, plant maintenance, sales and distribution.
"TCS believes that the use of IT-based solutions in the manufacturing
industry offers a significant opportunity to the industry to enhance its
competitive advantage by improving productivity. Our alliance with Tata
Chemicals and the key role that we will play in their business plan for the next
10 years is a milestone in TCS' quest for becoming a Global Top 10 consulting
enterprise," said, TCS CEO S. Ramadorai.
Tata Chemicals managing director Prasad Menon said, "We are working with
TCS to streamline our processes and effectively address key business drivers for
Tata Chemicals. Over the next two years, TCS will work with us to integrate
e-business applications, enterprise systems and production systems. This will
ensure the availability of consistent and timely information across the
organization."
TCS' Manufacturing Practice provides high-end consulting and IT-based
solutions to a wide spectrum of continuous process and discrete manufacturing
industries. The Practice's product and service offerings help companies improve
their performance by leveraging the power of the Internet to drive improved
efficiencies across the value stream of the enterprise.
The Manufacturing Practice focuses on developing solutions based on business
and technology components for the Automobile and Auto Components, Cement,
Refining, Chemicals and Minerals and Metals industries globally.
The Practice has developed two leading edge products - CemPac, a suite of
productivity solutions for the cement industry already implemented and
delivering measurable value at several cement plants in the country, and FACTORe,
for automation and streamlining of the maintenance management function in
plants.